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What is an assumption of risk clause in a contract?

I saw an "assumption of risk" clause in a contract I am about to sign and I don't understand it. Does it mean I'm accepting all risks and can't hold the other party responsible?

Answer

An assumption of risk clause means you agree to accept certain known risks tied to an activity or service. By signing, you acknowledge those risks and take responsibility for them.

However, it does not mean you accept all risks or give up all rights. It usually applies only to risks that are clearly described and inherent to the activity.

What risks are you actually accepting?

You are typically accepting risks that are expected and part of the activity. For example, normal risks that could happen even when things are done properly.

The clause shows that you understand these risks and agree not to hold the other party responsible for them.

Does it protect the other party from everything?

Assumption of risk may limit claims involving known and inherent risks. It generally does not apply to gross negligence, intentional harm, or conduct found reckless.

If harm happens because the other party failed to act reasonably, the clause may not apply. Courts often limit how far these clauses can go.

What to do next...

  1. Read the clause carefully to see what risks are listed.
  2. Check if the risks are clear and specific.
  3. Understand what rights you may still keep.
  4. Ask for clarification before signing if anything is unclear.

What to consider in your specific situation

While assumption of risk clauses are common, their effect depends on your contract and the activity involved.

  • The type of activity and level of inherent risk.
  • The exact wording and scope of the clause.
  • Whether risks are clearly explained.
  • Local laws that affect enforceability.
  • The seriousness of potential harm.
  • Whether negligence or misconduct is involved.

Understanding what risks you are accepting can help you make informed decisions before signing. Since every situation is different, consider more information through Rocket Copilot, a Legal Pro, or a legal document review to move forward with confidence.

Pro Reviewed
Published on 04/19/2026
Reviewed by Pamela K. Streng, Esq.

At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced attorneys to ensure legal accuracy.

Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask an Attorney.

Laura Bojart
Laura Bojart
Editorial Researcher and Copywriter

Laura Bojart is an SEO copywriter and editor at Rocket Lawyer. She researches legal and business topics and translates complex ideas into clear, practical content for everyday readers. With her background in journalism and endless curiosity, she approaches each subject by asking the questions readers are likely to have first, making legal information approachable and easy to understand even to those with no legal background.